The Impact of Current Trade and

Agricultural Policies on Farmers

Julie Newman

12th February 2010

From Plains to Plate

Adelaide

Increased food production = lower food price

Lowest prices = increased hungry (farmers impoverished)

Farmers need to remain

economically viable to produce

foodReference: http://feedingtheworldconference.files.wordpress.com/2008/12/prof-janice-jiggins-systemic-risk-in-food-farming-can-it-be-avoided.pdfFeeding The World... Are GM Crops fit for Purpose? If not, then what?A conference to examine, searchingly and honestly, the claims and counter claims of one of the most critical issues of our time. Conference 12 Nov 2008 at the QEII Conference Centre, Westminster, London.Speaker presentation for Professor Janice Higgins

Current Policy Aims include:

• CHEAP FOOD - Free Trade Agreements Australian farmers competing against subsidies for our competitors or lack of regulation and lower costs

• Corporatisation of public assets and encouraging business creation and alliances - National Competition Policy

• Regulate: ACCC, FSANZ, OGTR – public relations exercise to promote government policies and business

Success? 1b starving, 1b obese

Short term: Yes – cheaper food, government profits

Long term: No – beneficiaries are corporate companies

Profit declining

Increased Subsidies

US$1.64b/day (RIRDC)

Increasing costs

Decreasing commodity prices

FARM INCOME

Australia US

Farmers are price takers, not price setters!Farmers are price takers, not price setters!

Will we see an increase in commodity price?Will we see an increase in commodity price?

Will we see a decrease in cost?Will we see a decrease in cost?

Zero net income

Threats to Food Production

• Oil shortage - Farming and world trade are totally reliant on oil which is predicted to run out around 2040

• Demand exceeding production – Yields affected by global warming and lack of sustainability. Population increasing and useage changing from grains to meat

• Non-food cropping alternatives – Fuel, industrial and pharmaceutical crops

• Corporate control of food supply – Corporates currently dictate terms to farmers. Farmers to become contract growers for a single supply chain (GM)

What policies do we need to equitably

feed ourselves into the future?

• Strengthen powers of ACCC and impartial investigation into anti-competitive practises within the

Australian Food Supply

• Plant breeding

• Seed industry

• Produce buyers

• Contracts with supply chain

2. Remove current legislation promoting anti-competitive practises not permitted in other

industries: • Remove pools exemption from Financial Services Act

(past – AWB)• Remove compulsory GRDC levies unless benefit is

directly for farmers, farmers to own the intellectual property we fund and receive tax benefits for R&D like any other business (rather than levies being classed as government funded subsidies and allocated to increase costs to farmers)

• Amend Plant Breeder Rights legislation to ensure farmers are not charged for a product they do not want and could not prevent

• Introduce fair risk management (strict liability legislation) regarding GM crops to ensure the patent owner is liable for all health, environmental or economic loss caused by their product

3. Transparency in government:• Government agencies to provide factual and

independent data regardless of government policy

• All alliances and partnerships to be public, particularly with corporate sector (Monsanto submission)

• Prior to signing international agreements eg. Past: WTO agreements promoting GM and acceptance of inadequate testing. Future: considering economic assessment with exclusion for farmers and consumers

• Avenue for transparent public submissions for Senate estimates questions

4. Aim for a sustainable Australian farming sector to promote healthy and safe food for the future

• Promote Australian independence for fuel (eg. soy, corn, cotton and canola)

• Promote Australian supply chain • Encourage cooperatives over corporates• Using crops for alternative sources should be

prevented unless the process is reversible eg. Introduction of pharmaceutical crops could remove the ability for farmers to produce safe food

• promote family farming over corporate farming

If risks are not If risks are not managedmanaged

Australian farmers and Australian farmers and Australian food will be Australian food will be under serious threatunder serious threat